Not much is known about Faludi's early life, only that he was a businessman in Devecser until 1878, and in that same year moved to Budapest and developed the first theatre ticket booth system in the country, which he leased out.

In 1919, the theatre was forced to create a list of all its pieces that it would be presenting in advance, on the orders of the Cultural Ministry of the short-lived Hungarian Soviet Republic.

During a time when political powers tried to occupy a large place in the workings of cultural institutions, Miklós Faludi asked the state's top attorney Albert Váry [hu] whether he could present protégé Géza Fazekas "Randevú" (Rendezvous) titled play with the following words: No matter how certain the low comedy of mischief is, at this point we cannot return to those performances in which the switching of identity, mistaken identity, and the mistress's constant nagging complicate activities.

Gábor Faludi smartly attempted to spread his ever-increasing funds into various ventures, and his personal tragedy was that while his name amongst the citizenry constantly grew, he decided to push the prosperity of the Vígszínház into the midst of war profiteers.

Faludi immediately took strategic steps to cut his spending, and asked the leasing committee of the theatre for a moderation of the twenty thousand korona rental fee, at the same time decreasing the salary of his actors by sixty percent.

Only Gyula Hegedűs [hu] dared to object, probably because he had been offered a position at the National Theatre, while the others agreed to part with more than half their normal salaries.

A play titled All of us have to leave (A mindnyájunknak el kell menni) co-written by Gyula Hegedűs and Jenő Faragó debuted on 1 September 1914 and cheered up the otherwise melancholy audiences.

The last scene was only first performed half a century later, on 18 August 1964, the birthday of Emperor Franz Josef while crowds were viewing the imperial crowns of Serbia and Russia in the Hungarian National Museum at a memorial exhibition about the "victorious war".

This ambition was fulfilled when Gábor Faludi leased the National Opera's empty premises, and created a company independent of the Vígszínház with the name of the Városi Szinház (City Theatre).

He transferred the Vígszínház's biggest operette successes (Három a kislány, Médi) here, to the repertoire of the theatre with Budapest's largest audience capacity.

Various information attests to the nature of the Vígszínház as an extremely successful, complimentary business for Gábor Faludi, providing prosperous positions and a solid future for his family members.

Sándor Hunyady, when speaking about the 1910s, described the theatre's financial situation in the following manner: "the business is in such strong form, and is infected with such life, that it is like a small Italian renaissance republic.

It was a common occurrence that every season from September to February the theatre made up for all of its annual expenditures, and after that every ticket sold was surplus, pure profit.

There is no need to be frugal, the financial office gives advances without keeping count, and pays the incredible bills of the Miksa Schmidt furniture company without any fuss".

The extreme-right wing political powers' immediate disagreement over this transaction is understandable, since they feared new danger due to this cosmopolitan landmark's change of hands.

They did not make their anger heard only in newspaper articles, but they also planned illegal actions with the aim to breach the peace and scare the crowds out of the theatre.

The minor terrorist activities did not yet immediately endanger the lives of citizens, but the explosion of a stink bomb scared the well-dressed, unprotected crowds into the streets.

It expanded when the opportunity presented itself (a kamara theatre was established in 1935 with the name Pesti Színház in Révay Street), and with quick decision-making removed those plays from its repertoire, which it had paid for.